http://www.sequenceinc.com/fraudfiles/2008/07/08/the-cost-and-risks-of-becoming-an-audit-partner/ Thu, 18 Mar 2010 05:52:34 +0000 http://wordpress.org/?v=2.9.1 hourly 1 http://www.sequenceinc.com/fraudfiles/2008/07/08/the-cost-and-risks-of-becoming-an-audit-partner/comment-page-1/#comment-183137 Big 4 worker Sun, 31 May 2009 12:42:57 +0000 http://www.sequence-inc.com/fraudfiles/?p=1645#comment-183137 The cost is nothing to the partners as the big four have agreements with the banks, the capital contributions are basically loans agreed with the firms bank, but in the name of the partner. In the big four the capital contribution is a non-issue as its just a matter of signing a piece of paper, no money goes in or out of your account. The cost is nothing to the partners as the big four have agreements with the banks, the capital contributions are basically loans agreed with the firms bank, but in the name of the partner. In the big four the capital contribution is a non-issue as its just a matter of signing a piece of paper, no money goes in or out of your account.

]]> http://www.sequenceinc.com/fraudfiles/2008/07/08/the-cost-and-risks-of-becoming-an-audit-partner/comment-page-1/#comment-165660 Tracy Coenen Wed, 01 Oct 2008 13:25:39 +0000 http://www.sequence-inc.com/fraudfiles/?p=1645#comment-165660 Ryan - Insurance has limits and doesn't pay for everything. For one, insurance policies generally don't cover criminal acts... and fraud is a crime. No, too many AA people didn't start working for Enron. That had little or nothing to do with it. And the new firms couldn't really make "deals" for the new partners because it would be unfair to the partners who paid the full fare to become partner. Regardless of the business brought along, there are still some basic parameters that they need to remember to keep it fair for everyone. Thanks for your questions! Ryan – Insurance has limits and doesn’t pay for everything. For one, insurance policies generally don’t cover criminal acts… and fraud is a crime. No, too many AA people didn’t start working for Enron. That had little or nothing to do with it. And the new firms couldn’t really make “deals” for the new partners because it would be unfair to the partners who paid the full fare to become partner. Regardless of the business brought along, there are still some basic parameters that they need to remember to keep it fair for everyone. Thanks for your questions!

]]> http://www.sequenceinc.com/fraudfiles/2008/07/08/the-cost-and-risks-of-becoming-an-audit-partner/comment-page-1/#comment-165655 Ryan M Wed, 01 Oct 2008 04:36:46 +0000 http://www.sequence-inc.com/fraudfiles/?p=1645#comment-165655 Aren't the firms/partners well insured for something like that? And don't you think both the firms and the gov't learned a lesson from AA? I thought the biggest problem with AA/Enron was how so many people from AA started working for Enron - moves that are almost impossible now because of SOX (and, really, what helped to ruin AA's reputation). Plus, I'm no expert when it comes to this, but I'm willing to bet special capital buy ins at the other firms were arranged for former AA partners because of all the new business they were bringing in with their old clients. Wouldn't you think? Aren’t the firms/partners well insured for something like that? And don’t you think both the firms and the gov’t learned a lesson from AA? I thought the biggest problem with AA/Enron was how so many people from AA started working for Enron – moves that are almost impossible now because of SOX (and, really, what helped to ruin AA’s reputation). Plus, I’m no expert when it comes to this, but I’m willing to bet special capital buy ins at the other firms were arranged for former AA partners because of all the new business they were bringing in with their old clients. Wouldn’t you think?

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